US stocks joins global rally, S&P nears record high
Major US equity indices joined a broad run-up in global equity markets and traded with strong gains during the opening hour of trade on Tuesday.
Market participants attributed the early leg of up-move to a sharp rebound in China's Shanghai Composite, which helped traders to push aside persistent trade tensions between the world's two largest economies.
Investors also took cues from positive corporate earnings results, which has been described as one of the best earnings seasons in the recent history. This coupled with the prevailing bullish sentiment around crude oil prices lifted energy stocks and remained supportive of the positive momentum.
A combination of supporting factors, further boosted by strong gains in technology stocks, lifted the broader S&P 500 Index back within striking distance of record high.
As we get closer to the end of earnings season, trade-related worries and forthcoming US mid-term elections might now contribute towards keeping a lid on the markets.
At the time of writing this report, the Dow Jones Industrial Average was up over 150-points to 25,660 and the broader S&P 500 climbed around 10-points to 2,860. Meanwhile, tech-heavy Nasdaq Composite Index added 25-points and inched closer to the 7,900 mark.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
